In Its First Period of Operations, Lake of Fire Company

question 67

Multiple Choice

In its first period of operations, Lake of Fire Company purchased supplies costing $7,000 and debited Supplies for the full amount.At the end of the accounting period, a physical count of supplies revealed $1,900 still on hand.The appropriate adjusting journal entry to be made at the end of the period would be

• A)Debit Supplies Expense, $1,900; Credit Supplies, $1,900.
• B)Debit Supplies, $5,100; Credit Supplies Expense, $5,100.
• C)Debit Supplies Expense, $5,100; Credit Supplies, $5,100.
• D)Debit Supplies, $1,900; Credit Supplies Expense, $1,900.

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Definitions:

Veterinarian Supplies

Items and materials, including medical equipment and medication, used by veterinarians to care for animals.

Shampoo

A hair care product designed to clean the scalp and hair, removing dirt, oils, and other impurities, often formulated with various ingredients for different hair types and needs.

Objection

A challenge or disagreement voiced by a potential buyer in response to a sales pitch, needing to be addressed by the salesperson.

Price

The amount of money required to purchase a good or service.